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Abatement notice is forwarded by the court of law to the owner else called as occupier of a property. The notice will be sent regarding the private nuisance that took place within the boundary of his property. It describes the intention of law to enter his premises i.e. in order to abate the nuisance.
Abstract of a Title:
The abstract of a title is the compressed history of the title to a particular area of real estate. Here area refers to all the fixings that are related to that particular land. It consist the summary of original grant along with all the subsequent conveyances, encumbrances that affects the property. It is also said to be the certificate of an abstractor stating that all the history details furnished in the abstract are complete and accurate.
Acre refers to the unit of area for measurement. One acre comprises of 4,840 square yards or 43,560 square feet. In early days the measurement of an acre is an approximate area of land that an ox could plough a field in one day. Acre is a measure of area which does not have a particular width, size or shape.
In 1958, United States of America and Common Wealth of Nations defined the international length of an acre to be exactly 4046.8564224 square meters. This is the most common measurement used today in India.
Adjustable Rate Mortgage:
Adjustable rate mortgage (ARM) is a mortgage loan where the interest rate of the loan is periodically adjusted basing on a variety of indices. This is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to index. Hence, the installment that is paid by the borrower increases due to the changing interest rates.
Basic Features of Adjustable Rate Mortgage:
Initial Interest Rate: The starting interest of an ARM.
Adjustable Period: The time period in which interest rate or loan period of an ARM remains unchanged.
Index Rate: ARM interest rate changes along with the index rate. Index rate is based on the national or regional average cost of funds allotted to savings and loan associations.
Margin: The percentage of interest rate that a lender added to the actual ARM interest rate.
Initial Discounts: Interest rate concessions that a lender offer. This initial discount is used by the lender for promotional purpose.
Negative Amortization: Negative amortization means the mortgage balance is increasing. This is mostly possible in the adjustable rate mortgage as the interest rate increases due to index.
Conversion: The agreement between the lender and borrower contains a clause “Allow the buyer to convert from ARM to a fixed mortgage plan at designated times.”
Prepayment: One may deal carefully that some agreements may state that the buyer should pay special fees or penalty if the loan is prepaid before the desired time.
Acceleration clause is a term that that is used for mortgage loans. Acceleration clauses allow the lender to demand the payment of the outstanding loan balance. The most common reason for accelerating a loan is the borrower transfers the title to another individual without prior intimation to the lender. It is a most used term in the field of real estate. It refers to purchase a real estate on installment basis.